Abstract: Diabetic wound healing involves complex pathophysiological mechanisms. Factors such as hyperglycemia and persistent inflammatory microenvironment can not only delay the healing progress, but also lead to further deterioration of the wound, making the traditional treatment methods face greater limitations. As a new class of biomaterials, self-assembled hydrogels of traditional Chinese medicine have shown significant potential in the treatment of diabetic wounds. The material has good biocompatibility and high water holding capacity, and can be used as a drug carrier to achieve sustained-release drug delivery, which helps to reduce side effects, improve curative effect, and accelerate wound repair. This article mainly reviews the disease characteristics of diabetic wound healing, the formation mechanism of self-assembled hydrogel of traditional Chinese medicine, the application of self-assembled hydrogel of traditional Chinese medicine in the treatment of diabetic wound healing, and its advantages of drug delivery. At present, self-assembled hydrogels of traditional Chinese medicine still face challenges such as insufficient mechanical strength and poor accuracy of responsive regulation. In the future, it is necessary to focus on multi-responsive design and clinical translation research.